The Axpo Group produces, trades and distributes energy reliably in Switzerland and in over 30 countries throughout Europe. Around 4500 employees combine the expertise from 100 years of climate-friendly power production with innovative strength for a sustainable energy future. Axpo is an international leader in energy trading and in the development of tailor-made energy solutions for its customers. Continue reading
Dieses Seminar soll Sie an einem Tag kompakt und umfassend aufdatieren über aktuelle Entwicklungen im Bereich der Mehrwertsteuer. Sie werden dabei zunächst über die Auswirkungen der jüngsten Leitentscheide der Gerichte sowie der aktuellen Verwaltungspraxis informiert. Detailliert wird im Folgenden praxisnah die Problematik bei Weiterverrechnungen von Leistungen oder Auslagen aufgezeigt und die korrekte, mehrwertsteuerliche Behandlung dargestellt. Dann folgt ein Referat zu den Entwicklungen bei den OECD Mehrwertsteuer-Standards. Anhand von Fallbeispielen analysiert wird die Beurteilung von Nicht-Entgelten und Nicht-Leistungen etwa bei der Weiterleitung von Subventionen, der Abgrenzung von Kapitaleinlagen zu Subventionen, Sacheinlagen oder hoheitlichen gegenüber unternehmerischen Leistungen. Schliesslich wird ein Blick auf Neuerungen beim Vertrieb von Finanzprodukten wie Aktien, Hypotheken, Fonds oder Versicherungsprodukten geworfen, welcher auch die Vermittlungstätigkeit umfasst. Continue reading
In accordance with the Turkish VAT Law, importation of goods and services is subject to VAT, and the taxpayer for the importation is defined as the importer. In other words, the importer of record is the party which imports the goods. Please note that tax ID is required for importation procedures; therefore, only a Turkish resident entity may conduct importation. Continue reading
Die Mehrwertsteuer (MWST) ist eine ständige Herausforderung. In den letzten Monaten hat die ESTV wiederum viele wichtige Änderungen und Präzisierungen ihrer Verwaltungspraxis und verschiedene Entwürfe zur Vernehmlassung publiziert. Das Bundesgericht und das Bundesverwaltungsgericht waren ebenfalls nicht untätig. Daneben trat auf den 1. Januar 2019 auch noch die neue gesetzliche Regelung für den Versandhandel in Kraft. Continue reading
The EU Quick fixes, i.e. measures aiming to improve the current VAT system applicable as of January 2020 will require businesses to adapt their systems and processes. We will therefore share with you the first observations collected from the various EU countries that have already released their draft legislation and discuss the practical implementation and steps required to check the readiness of your company in connection with those new rules.
As usually, we will provide you also with an overview of worldwide developments including practical experiences from recent VAT audits in Switzerland and interesting ITX news from locations, such as Bangladesh, India and China.
Prior the judiciary holidays, we will present the latest impacting cases issued by the ECJ with particular focus on the input VAT deduction right and the points of attention for businesses to secure those rights, particularly, in supply chain transactions.
Finally yet importantly, we will discuss the trade wars and the resulting increased focus on customs as with the increase in rates the duties become more important as ever. Since experience shows that businesses are often lacking the necessary controls in this area, our Customs specialists will share their insights on the future developments and present the solutions that businesses could implement to assess their actual position and identify potential saving opportunities.
Thursday 20 June 2019
This event is free of charge.
PwC Geneva, Avenue Giuseppe Motta 50, 1202 Genève
- Patricia More, Tax & Legal Services Principal – ITX, PwC Switzerland
- Konstantina (Nadia) Tsiosta, Tax & Legal Services Manager – ITX, PwC Switzerland
- Kristyna Kaniova, Tax & Legal Services Manager – ITX, PwC Switzerland
- Krisztina Nagy, Tax & Legal Services Assistant Manager – ITX, PwC Switzerland
08:00 Welcome & coffee
08:40 VAT Outlook: EU Quick fixes & Latest ITX developments around the globe
09:00 Impacting Case Law
09:20 Customs update: Trade wars & Insights on Customs processes, management & optimization
10:00 Q&A & networking
10:30 End of the event
Find out more and register here >
Image source: unsplash.com
On May 16, 2019 the Polish legislator published draft of amendments to the VAT act aimed at introducing mandatory split payment mechanism for selected goods and services in Poland. This is a follow up to derogation decision that granted Poland right to introduce mandatory split payment. Find below the most important information resulting from the draft legislation:
- the obligatory split payment applies only to transactions made between taxpayers (B2B), which are subject to VAT in Poland and with value exceeding 15 000 zł,
- the obligation to use the split payment mechanism will cover selected goods and services,
- foreign entities settling transactions by means of bank transfers subject to VAT in Poland will be obliged to open a bank account in Poland,
- new invoice layout requirements will be introduced in order to mark an invoice documenting delivery of goods / services subject to the mandatory split payment method,
- it will be possible to cover multiple invoices with single split payment operation (collective payment),
- funds accumulated on VAT account can be used to pay other tax liabilities (PIT, CIT, excise, customs duties) as well as social security (ZUS).
Goods and services covered by the mandatory split payment
According to the annex to the draft legislation, the split payment mechanism will obligatorily be applied to 150 product and service groups defined in accordance with the Polish Classification of Products and Services (PKWiU) from 2008.
In general, the following groups of goods and services can be distinguished:
- steel products, precious metals, non-ferrous metals;
- waste, scrap, recyclable materials;
- electronics, specifically: processors, smartphones, phones, tablets, net-books, laptops, game consoles, inks, toners, hard drives;
- fuels for cars, fuel and lubricating oils;
- greenhouse gas emission rights;
- building and constructions services;
- sale of car and motorcycle parts.
Sanctions for lack of compliance
There are numerous sanctions that can be imposed for lack of compliance with using split payment when it is required. In case of:
- failure to include on the invoice information that transaction is subject to mandatory split payment regime, the invoice issuer may receive a fine of 100% of the VAT value resulting from such invoice,
- failure to pay in the mandatory split payment regime, the buyer may receive a penalty equal to 100% of the VAT value resulting from such invoice,
- failure to pay in the mandatory split payment regime, the buyer will not be entitled to treat such cost as tax deductible (from CIT / PIT perspective),
- failure to pay in the mandatory split payment regime, the person responsible for the occurrence of such a situation will be subject to sanctions resulting from the fiscal penal code (up to 720 daily rates).
Taking into account the risk of imposing significant sanctions, both on the part of the supplier and the buyer, it will be crucial to properly identify the transactions covered by the obligatory split payment method and then comply with this regime. However, there are doubts about the transaction value, i.e. how to determine what triggers the 15 000 zl transaction limit (is this amount based on individual invoice, transaction group, payment) and how to identify certain goods and services covered by the mandatory split payment. Specifically, the way car and motorcycle parts were mentioned (as a reference to type of activity being wholesale and retail trade) will cause significant interpretation troubles for automotive industry.
Entry into force
The legislator planned that rules on the obligatory split payment become effective from 1 September 2019. Some provisions (for example PIT / CIT sanctions related with not using split payment) will take effect from January 1, 2020.
In order to avoid sanctions and possible personal liability, every taxpayer who purchases or sells oods or services covered by the mandatory split payment should be prepared for introduction on this regime.
Such preparation should include at least:
- identification of goods and services for which split payment will have to be used (AP),
- identification of goods and services for which a VAT invoice issued should contain the
- information “split payment mechanism” (AR),
- establishing rules on recognizing when 15 000 zł threshold is exceeded,
- aligning payment and invoicing processes in order to achieve compliance with split payment rules.
If your booking, invoicing or payment processing is done via SSC, it will be particularly important to initiate changes of these processes early enough.
Another important matter is solvency. With cash flow impact by receiving only net values on regular accounts, funds accumulated on VAT account could become significant challenge over time. Especially business that are on VAT refund position should be aware of this.
For further details please contact
Tomasz Kassel, Partner
Tel. + 48 502 184 846
Tomasz Pabiański, Director
Tel. + 48 502 184 952
Jakub Matusiak, Director
Tel + 48 502 184 468
Image Source: unsplash.com
The reduced VAT rate and tariff value system are to be revoked in order to implement the single VAT rate system. However, it has been reported that the National Board of Revenue may implement multi-tier VAT rates instead of a single rate. Continue reading